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Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2018
Retirement Benefits [Abstract]  
Components of net periodic benefit cost
The following tables 11.1, 11.2, and 11.3 provide the components of aggregate annual net periodic benefit cost for each of the years ended December 31, 2018, 2017, and 2016 and changes in the benefit obligation and the funded status of the pension, supplemental executive retirement and other postretirement benefit plans as recognized in the consolidated balance sheets as of December 31, 2018 and 2017.
Components of net periodic benefit cost
Table
11.1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pension and Supplemental Executive Retirement Plans
 
Other Postretirement Benefits
(In thousands)
 
12/31/2018
 
12/31/2017
 
12/31/2016
 
12/31/2018
 
12/31/2017
 
12/31/2016
1. Company Service Cost
 
$
10,530

 
$
9,556

 
$
9,130

 
$
1,160

 
$
813

 
$
751

2. Interest Cost
 
15,095

 
15,475

 
15,906

 
834

 
706

 
704

3. Expected Return on Assets
 
(22,250
)
 
(20,099
)
 
(19,508
)
 
(6,359
)
 
(5,248
)
 
(4,886
)
4. Other Adjustments
 
—

 
—

 
—

 
—

 
—

 
—

Subtotal
 
3,375

 
4,932

 
5,528

 
(4,365
)
 
(3,729
)
 
(3,431
)
5. Amortization of:
 
 

 
 

 
 

 
 

 
 

 
 

a. Net Transition Obligation/(Asset)
 
—

 
—

 
—

 
—

 
—

 
—

b. Net Prior Service Cost/(Credit)
 
(351
)
 
(426
)
 
(687
)
 
(4,104
)
 
(6,649
)
 
(6,649
)
c. Net Losses/(Gains)
 
6,937

 
6,169

 
5,856

 
(250
)
 
—

 
—

Total Amortization
 
6,586

 
5,743

 
5,169

 
(4,354
)
 
(6,649
)
 
(6,649
)
6. Net Periodic Benefit Cost
 
9,961

 
10,675

 
10,697

 
(8,719
)
 
(10,378
)
 
(10,080
)
7. Cost of settlements
 
—

 
—

 
1,277

 
—

 
—

 
—

8. Total Expense for Year
 
$
9,961

 
$
10,675

 
$
11,974

 
$
(8,719
)
 
$
(10,378
)
 
$
(10,080
)
Development of funded status
Development of funded status
Table
11.2
 
 
 
 
 
 
 
 
 
 
Pension and Supplemental Executive Retirement Plans
 
Other Postretirement Benefits
(In thousands)
 
12/31/2018
 
12/31/2017
 
12/31/2018
 
12/31/2017
Actuarial Value of Benefit Obligations
 
 
 
 
 
 
 
 
1. Measurement Date
 
12/31/2018

 
12/31/2017

 
12/31/2018

 
12/31/2017

2. Accumulated Benefit Obligation
 
$
375,562

 
$
411,996

 
$
28,085

 
$
24,716

 
 
 
 
 
 
 
 
 
Funded Status/Asset (Liability) on the Consolidated Balance Sheet
 
 
 
 
 
 
 
 
1. Projected Benefit Obligation
 
$
(376,153
)
 
$
(417,770
)
 
$
(28,085
)
 
$
(24,716
)
2. Plan Assets at Fair Value
 
359,719

 
401,142

 
77,762

 
85,303

3. Funded Status - Overfunded/Asset
 
N/A

 
N/A

 
$
49,677

 
$
60,587

4. Funded Status - Underfunded/Liability
 
(16,434
)
 
(16,628
)
 
N/A

 
N/A


Accumulated other comprehensive income (loss)
Table
11.3
 
 
 
 
 
 
 
 
 
 
Pension and Supplemental Executive Retirement Plans
 
Other Postretirement Benefits
(In thousands)
 
12/31/2018
 
12/31/2017
 
12/31/2018
 
12/31/2017
1. Net Actuarial (Gain)/Loss
 
$
110,321

 
$
109,904

 
$
939

 
$
(10,234
)
2. Net Prior Service Cost/(Credit)
 
(1,513
)
 
(1,850
)
 
2,690

 
(5,342
)
3. Net Transition Obligation/(Asset)
 
—

 
—

 
—

 
—

4. Total at Year End
 
$
108,808

 
$
108,054

 
$
3,629

 
$
(15,576
)
Change in projected benefit obligation
Table 11.4 shows the changes in the projected benefit obligation for 2018 and 2017.
Change in projected benefit / accumulated benefit
Table
11.4
 
 
 
 
 
 
 
 
 
 
Pension and Supplemental Executive Retirement Plans
 
Other Postretirement Benefits
(In thousands)
 
12/31/2018
 
12/31/2017
 
12/31/2018
 
12/31/2017
1. Benefit Obligation at Beginning of Year
 
$
417,770

 
$
369,808

 
$
24,716

 
$
17,378

2. Company Service Cost
 
10,530

 
9,556

 
1,160

 
813

3. Interest Cost
 
15,095

 
15,475

 
834

 
706

4. Plan Participants' Contributions
 
—

 
—

 
475

 
395

5. Net Actuarial (Gain)/Loss due to Assumption Changes
 
(36,132
)
 
38,496

 
(1,209
)
 
5,981

6. Net Actuarial (Gain)/Loss due to Plan Experience
 
2,487

 
2,338

 
(692
)
 
924

7. Benefit Payments from Fund (1)
 
(32,674
)
 
(17,578
)
 
(1,077
)
 
(1,404
)
8. Benefit Payments Directly by Company
 
(908
)
 
(335
)
 
—

 
—

9. Plan Amendments
 
(15
)
 
10

 
3,928

 
—

10. Other Adjustment
 
—

 
—

 
(50
)
 
(77
)
11. Benefit Obligation at End of Year
 
$
376,153

 
$
417,770

 
$
28,085

 
$
24,716

(1) 
Includes lump sum payments of $20.9 million and $6.3 million in 2018 and 2017, respectively, from our pension plan to eligible participants, which were former employees with vested benefits.
Change in plan assets
Tables 11.5 and 11.6 shows the changes in the fair value of the net assets available for plan benefits, and changes in other comprehensive income (loss) during 2018 and 2017.
Change in plan assets
Table
11.5
 
 
 
 
 
 
 
 
 
 
Pension and Supplemental Executive Retirement Plans
 
Other Postretirement Benefits
(In thousands)
 
12/31/2018
 
12/31/2017
 
12/31/2018
 
12/31/2017
1. Fair Value of Plan Assets at Beginning of Year
 
$
401,142

 
$
360,900

 
$
85,303

 
$
70,408

2. Company Contributions
 
10,908

 
9,435

 
—

 
—

3. Plan Participants' Contributions
 
—

 
—

 
475

 
395

4. Benefit Payments from Fund
 
(32,674
)
 
(17,578
)
 
(1,077
)
 
(1,404
)
5. Benefit Payments paid directly by Company
 
(908
)
 
(335
)
 
—

 
—

6. Actual Return on Assets
 
(19,583
)
 
48,720

 
(6,464
)
 
16,299

7. Other Adjustment
 
834

 
—

 
(475
)
 
(395
)
8. Fair Value of Plan Assets at End of Year
 
$
359,719

 
$
401,142

 
$
77,762

 
$
85,303
Change in accumulated other comprehensive income (AOCI)
Change in accumulated other comprehensive income (loss) ("AOCI")
Table
11.6
 
 
 
 
 
 
 
 
 
 
Pension and Supplemental Executive Retirement Plans
 
Other Postretirement Benefits
(In thousands)
 
12/31/2018
 
12/31/2017
 
12/31/2018
 
12/31/2017
1. AOCI in Prior Year
 
$
108,054

 
$
101,575

 
$
(15,576
)
 
$
(18,079
)
2. Increase/(Decrease) in AOCI
 
 

 
 

 
 

 
 

a. Recognized during year - Prior Service (Cost)/Credit
 
351

 
426

 
4,104

 
6,649

b. Recognized during year - Net Actuarial (Losses)/Gains
 
(6,937
)
 
(6,169
)
 
250

 
—

c. Occurring during year - Prior Service Cost
 
(15
)
 
10

 
3,928

 
—

d. Occurring during year - Net Actuarial Losses/(Gains)
 
7,355

 
12,212

 
10,923

 
(4,146
)
3. AOCI in Current Year
 
$
108,808

 
$
108,054

 
$
3,629

 
$
(15,576
)
Amortizations expected to be recognized during next fiscal year
Table 11.7 shows the amount of amortization on components of net periodic benefit costs expected to be recognized during the year ending December 31, 2019.
Amortization expected to be recognized during fiscal year ending
Table
11.7
 
 
 
 
 
 
Pension and Supplemental Executive Retirement Plans
 
Other Postretirement Benefits
(In thousands)
 
12/31/2018
 
12/31/2018
1. Amortization of Net Transition Obligation/(Asset)
 
$
—

 
$
—

2. Amortization of Prior Service Cost/(Credit)
 
(280
)
 
(34
)
3. Amortization of Net Losses/(Gains)
 
8,271

 
—
Actuarial assumptions
The projected benefit obligations, net periodic benefit costs and accumulated postretirement benefit obligation for the plans were determined using the following weighted average assumptions.
Actuarial assumptions
Table
11.8
 
 
 
 
 
 
 
 
 
 
Pension and Supplemental Executive Retirement Plans
 
Other Postretirement Benefits
 
 
12/31/2018
 
12/31/2017
 
12/31/2018
 
12/31/2017
Weighted-Average Assumptions Used to Determine
 
 
 
 
 
 
 
 
Benefit Obligations at year end
 
 
 
 
 
 
 
 
1. Discount Rate
 
4.40
%
 
3.75
%
 
4.25
%
 
3.55
%
2. Rate of Compensation Increase
 
3.00
%
 
3.00
%
 
N/A

 
N/A

 
 
 
 
 
 
 
 
 
Weighted-Average Assumptions Used to Determine
 
 

 
 

 
 

 
 

Net Periodic Benefit Cost for Year
 
 

 
 

 
 

 
 

1. Discount Rate
 
3.75
%
 
4.30
%
 
3.55
%
 
3.95
%
2. Expected Long-term Return on Plan Assets
 
5.75
%
 
5.75
%
 
7.50
%
 
7.50
%
3. Rate of Compensation Increase
 
3.00
%
 
3.00
%
 
N/A

 
N/A

 
 
 
 
 
 
 
 
 
Assumed Health Care Cost Trend Rates at year end
 
 

 
 

 
 

 
 

1. Health Care Cost Trend Rate Assumed for Next Year
 
N/A

 
N/A

 
6.25
%
 
6.50
%
2. Rate to Which the Cost Trend Rate is Assumed to Decline (Ultimate Trend Rate)
 
N/A

 
N/A

 
5.00
%
 
5.00
%
3. Year That the Rate Reaches the Ultimate Trend Rate
 
N/A

 
N/A

 
2024

 
2024
Year-end asset allocations of the plans
The year-end asset allocations of the plans are shown in table 11.9 below.
Plan assets
Table
11.9
 
 
 
 
 
 
 
 
 
 
 Pension Plan
 
Other Postretirement Benefits
 
 
12/31/2018
 
12/31/2017
 
12/31/2018
 
12/31/2017
1. Equity Securities
 
23
%
 
21
%
 
100
%
 
100
%
2. Debt Securities
 
77
%
 
79
%
 
—
%
 
—
%
3. Total
 
100
%
 
100
%
 
100
%
 
100
%
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]  
Schedule of investment allocation strategies
The equity investments use combinations of mutual funds, ETFs, and pooled equity account structures focused on the following strategies:
Strategy
 
Objective
 
Investment types
Return seeking growth
 
Funded ratio improvement over the long term
 
●
Global quality growth
 
 
●
Global low volatility
Return seeking bridge
 
Downside protection in the event of a declining equity market
 
●
Enduring asset
 
 
●
Durable company
Minimum and maximum allocation ranges for fixed income securities and equity securities
The primary focus in developing asset allocation ranges for the portfolio is the assessment of the portfolio's investment objectives and the level of risk that is acceptable to obtain those objectives.  To achieve these objectives the minimum and maximum allocation ranges for fixed income securities and equity securities are:
 
Minimum
 
Maximum
Equities (long only)
70
%
 
100
%
Real estate
0
%
 
15
%
Commodities
0
%
 
10
%
Fixed income/Cash
0
%
 
10
%
Actual and estimated future contributions and actual and estimated future benefit payments
Tables 11.12 and 11.13 show the current and estimated future contributions and benefit payments.
Company contributions
Table
11.12
 
 
 
 
 
 
Pension and Supplemental Executive Retirement Plans
 
Other Postretirement Benefits
(In thousands)
 
12/31/2018
 
12/31/2018
Company Contributions for the Year Ending:
 
 
 
 
1. Current
 
$
10,908

 
$
—

2. Current + 1
 
10,650

 
—


Benefits payments - total
Table
11.13
 
 
 
 
 
 
Pension and Supplemental Executive Retirement Plans
 
Other Postretirement Benefits
(In thousands)
 
12/31/2018
 
12/31/2018
Actual Benefit Payments for the Year Ending:
 
 
 
 
1. Current
 
$
33,582

 
$
652

Expected Benefit Payments for the Year Ending:
 
 

 
 

2. Current + 1
 
33,258

 
1,352

3. Current + 2
 
28,688

 
1,650

4. Current + 3
 
30,574

 
1,916

5. Current + 4
 
30,490

 
2,386

6. Current + 5
 
30,510

 
2,613

7. Current + 6 - 10
 
143,389

 
14,065
Effect of a 1% change in the health care trend rate assumption
A 1 percentage point change in the health care trend rate assumption would have the following effects on other postretirement benefits:
Health care trend rate assumption
Table
11.14
 
 
 
 
(In thousands)
 
1-Percentage
Point Increase
 
1-Percentage
Point Decrease
Effect on total service and interest cost components
 
$
327

 
$
(282
)
Effect on postretirement benefit obligation
 
3,221

 
(2,866
)
Pension Plan  
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]  
Fair value of plan assets
Tables 11.10a and 11.10b set forth by level, within the fair value hierarchy, the pension plan assets and related accrued investment income at fair value as of December 31, 2018 and 2017. There were no securities that used Level 3 inputs.
Pension plan assets at fair value as of December 31, 2018
Table
11.10a
 
 
 
 
 
 
(In thousands)
 
Level 1
 
Level 2
 
Total
Domestic Mutual Funds
 
$
13,744

 
$
—

 
$
13,744

Corporate Bonds
 
—

 
181,363

 
181,363

U.S. Government Securities
 
19,904

 
1,324

 
21,228

Municipal Bonds
 
—

 
43,424

 
43,424

Foreign Bonds
 
—

 
30,113

 
30,113

ETFs
 
5,241

 
—

 
5,241

Pooled Equity Accounts
 
—

 
64,606

 
64,606

Total Assets at fair value
 
$
38,889

 
$
320,830

 
$
359,719

Pension plan assets at fair value as of December 31, 2017
Table
11.10b
 
 
 
 
 
 
(In thousands)
 
Level 1
 
Level 2
 
Total
Domestic Mutual Funds
 
$
1,006

 
$
—

 
$
1,006

Corporate Bonds
 
—

 
202,840

 
202,840

U.S. Government Securities
 
17,996

 
1,400

 
19,396

Municipal Bonds
 
—

 
62,293

 
62,293

Foreign Bonds
 
—

 
32,949

 
32,949

ETFs
 
5,734

 
—

 
5,734

Pooled Equity Accounts
 
—

 
76,924

 
76,924

Total Assets at fair value
 
$
24,736

 
$
376,406

 
$
401,142
Other Postretirement Benefit Plan  
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]  
Fair value of plan assets
Tables 11.11a and 11.11b set forth the other postretirement benefits plan assets at fair value as of December 31, 2018 and 2017. All are Level 1 assets.
Other postretirement benefits plan assets at fair value as of December 31, 2018
Table
11.11a
 
 
 
 
(In thousands)
 
Level 1
 
Total
Domestic Mutual Funds
 
$
60,405

 
$
60,405

International Mutual Funds
 
17,357

 
17,357

Total Assets at fair value
 
$
77,762

 
$
77,762

Other postretirement benefits plan assets at fair value as of December 31, 2017
Table
11.11b
 
 
 
 
(In thousands)
 
Level 1
 
Total
Domestic Mutual Funds
 
$
64,489

 
$
64,489

International Mutual Funds
 
20,814

 
20,814

Total Assets at fair value
 
$
85,303

 
$
85,303